The Financial Market Supervisory Authority FINMA has shut down the illegal providers of the fake e-coin cryptocurrency firm. The creators of E-Coin had acknowledged few of the million Swiss francs in public deposits without holding the obligatory banking license. FINMA has also come up with bankruptcy records against the legal objects involved. In its research, FINMA found that the three legal entities had extremely breached controlling law by failing to obtain the required authorization.
The reason mentioned for this is that many of the services are not a part of Alliance Capital and it seems to be on third-party websites. These third party sites are also measured by the individuals running Alliance Capital. One of the most popular from these is the initial-coin-offering scam, where scammers would set up a valueless coin and then run off with all the cash. FINMA has taken action to protect creditors by launching implementation proceedings against those involved and launched bankruptcy liquidation proceedings against the scam companies.
Alliance Capitals cryptocurrency firm has been offering many crypto products to its prospective customers like a trading platform and binary options. Its E-Coins have been totally under the workers’ control and stored locally on its servers. E-Coins were delivered without adequate asset backing, leading to a progressive thinning of the E-Coin system to the disadvantage of investors, as per the report on FINMA website.
FINMA Issues Warning About Dishonest Providers
Finma has been issuing warnings to many cryptocurrency firms that are illegal and big scammers. It has been maintaining three lists on its website for depositors, creditors and policyholders to refer that draw attention to possible dangers in the financial market.
A information stated in Finma website also mentioned that FINMA provides information about the potentially damaging behavior of certain financial market participants by maintaining on its website a warning list. It does publish advice on its website suggesting ways in which market participants can protect themselves. FINMA checks the companies and individuals on its warning list to check if they are providing unauthorized services.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]